CLICK HERE FOR A 30-DAY IFLIP TEST DRIVE FOR $1.95

Disclaimer: Of course, I can’t guarantee that you’ll make any money at all with iFLip or anyone else for that matter, because I don’t know you. I don’t know how much time you’ll put into learning and using iFLip or how dedicated you are to building your real estate business.

While all are extremely important, the correct answer is #4, Cash Buyers!

That’s what the big announcement is about… Cash Buyers.

Because it has been an obstacle for many of our students, Cameron and I have partnered up to provide Cash Buyer Information to some our best students. We call it our Cash Buyer Data Feed and until now it’s only been available to our top Mentorship/Partnership students and funding clients. It’s very exclusive.

There are ~ 30k new Cash Buyers added to the system every month and you get unlimited access to all the data, nationwide. The data can be downloaded into excel. Then, of course with the right tools, you can turn the data into spendable cash. It’s all physical addresses in the U.S. Sorry no email addresses (at this time)

This Cash Buyer info, with our “all access pass” is so incredibly powerful and helpful to our top students and clients that words can hardly describe it. Think about it. We’re talking Cash Buyers.

Let’s just say… deals done! BIG TIME.

So here’s the deal for Thanksgiving / Black Friday Week Only.

We’ve decided to open up this Cash Buyer Information (as a test) to all our students this week for you to TRY out and see for yourself how powerful this data is. It doesn’t matter where you live, there are new cash buyers every month in every city.

We are charging $50 a month right now for this feed. You can get an “all access pass” to this feed for less than 2 bucks.

That’s it.

So for your 2 bucks you’re getting unlimited use of the Cash Buyer Data Feed for 30 days. Then if you like it and want to keep using it, it’s only $49.95/mo.

If you don’t like it… you’re out having spent a whopping $1.97. No strings attached. No upsells, downsells, crosssells, whateversells…

It’s an unheard of deal, especially if you are buying and selling real estate.

Now because we’re still testing it with students, we will shut it off Sunday night. More than anything, I’m interested to watch what you do with the info. How many deals you do. How much money you make. How much and how quickly you grow your business.

We have also built out a special web site with a super “easy to use” dashboard interface, where you’ll have easy access to Cash Buyers from all over the USA. There’s also our mail manager direct mail system, task manager and more. The tools that will help you turn this data into spendable cash.

Go right now to the Cash Buyer Data Feed. <— Click there.

You’ll see a video Cameron shot a few weeks ago, where he'll give you all the details and it’s where you can jump on this 2 dollar trial before it closes.

We'll be closing it down on Sunday.

Get in on this right now.

Jarad & Cameron

P.S. Here is the link to get in --> www.foreclosureuniversity.com/CBDF

In the mean time, I have a little quiz… I want to see how well you know your stuff

As you know, we fund deals for our clients on a regular basis. The following are very recent examples of deals we’ve funded.

They’re also special because they share a few things in common:

Here is the quiz…

Which one of the above 4 common components do you think is THE most important to YOU when doing deals and cashing paychecks without the PITA of the deal falling apart and you having to scramble to save it.

My BIG announcement this week is going to address the correct answer to this quiz.

Let me know which one you think is most important and leave your answer below.

Stay tuned for more news!

Jarad

Answer:  - The least expensive thing to do is file bankruptcy. It will cost him $1500 and he can start over from scratch. A lot of lenders, when you tell them you are going to file, will work with you to find a solution. A better option might be to get an attorney or good real estate agent / short sale negotiator to help you push the short sale through with a full satisfaction meaning they can’t ask for any money to be paid back. The loan would be paid in full. Your son would receive a 1099 which would be negated with form 982 as mentioned. Don’t let the bank push you around… unfortunately they deal with homeowners a lot differently than an attorney or 3rd party negotiator because they automatically assume the homeowner doesn’t know what they are doing.

Answer:  - First you will receive a notice of default from the bank letting you know they are enforcing their rights in the contract to obtain the property in the event you don’t pay. Depending on your state and if it’s a judicial or non-judicial foreclosure process, you’ll either have your redemption period before or after the auction. If the redemption period is before the auction, then once the home forecloses you will receive a notice to vacate the premises. This is when you need to be out. If the redemption period is after the auction, then again you will be notified to vacate after the redemption period is over. The notice is usually posted on your door.

Answer:  - Yes, when the bank forecloses on a home and they get it back as an REO, in order for them to sell the property with a listing agent, the home usually has a clear title. If it doesn’t, you’ll be able to see what is clouding title when you go to closing. That’s also why you get title insurance. The title company is protecting you against any unpaid real estate taxes or liens.

Answer:  - Well, technically they can come after you for whatever is not satisfied. If the short sale is approved and successful, the individual doing the short sale will need to make sure it “satisfies” the loan in which you will receive a 1099-c. If they don’t satisfy the loan, then the bank retains the right to come after you for the deficient amount.

There is actually another option, similar to a short sale, but takes half the time, allows you to stay in the home or (be able to actually sell it in this case) for a profit. We basically get rid of the $150,000 second mortgage by offering a settlement with the lender. The loan is completely satisfied and it never shows up on your credit like a short sale does. Just another option out there for you to think about.

Answer:  - You can legally take everything that is yours which means anything that is NOT attached to the property itself. This would include furnishings, some appliances, personal belongings etc. You should leave the light fixtures, appliances that are attached or built in like the dishwasher, microwave, stove, the furnace, a/c unit, etc. You get the idea. The goal here is that they want you to leave peacefully. They are tired of ticking off tenants or homeowners who wreck the home as they leave. In the long run, it’s better to pay cash to help them leave. Now, you don’t have to leave if you don’t want to either. The bank or realtor may want you to believe you have no other option. But legally you do and you don’t have to accept their “cash for keys” offer. You have to weigh all the options. Is it benefiting your family to leave now or would it be better to leave a few months down the road to give you time to settle into another home. Timing is important. It’s not fun to leave right before a holiday or when school is almost out. It costs to move as well. Don’t settle on any amount less than $1000 or 1% of your homes value. Remember, if you leave now, you have to start making payments somewhere else. If the eviction process takes 90 days, that’s 3 months of rent you don’t have to pay for. By no means do I encourage you to stay, but run the numbers and make sure it’s beneficial for your family. The only repercussions if you don’t take the offer would be that you don’t get any cash to move out and you will be evicted eventually.

And more more thing. If you decide to go with the “cash for keys” option, make sure it’s all in writing

Answer:  - No, they won’t pursue you if I am reading this correctly. Same thing happens as with any 1st and 2nd lien holder. If the first lien holder forecloses and the 2nd lien holder doesn’t protect their position, they are wiped out. Any surplus from the auction would go to them. The home then goes back to the 1st lien holder. The 2nd who was wiped out has options. They can either write off the amount lost in the form of a 1099, or the can pursue the homeowner to try and collect the amount lost. So no, they won’t come after you, they will come after the person who originated the mortgage with them.

If you own property in more than one state, there will have to be a probate in each state where there is property. One state (your residence state usually) will be the state where the primary probate is conducted, and the probates in the other states will be ancillary probates. If you hold property in a trust like I have in my Accumulation and Preservation of Wealth there will be no probate.

2. Do You Really Want to Give the Government an Interest Free Loan?

If you are getting a tax refund, you are giving the government an interest free loan. This year don’t have so much withheld from your paycheck. It works out best if you have to pay just a little at tax time. Yes, you have to be a better money manager, but you’ll be a lot richer. Uncle Sam doesn’t need an interest free loan from you.

3. Naming Your Trust

For a little extra liability protection, name your living trust with an odd name rather than using your own name. It will make it harder for a creditor to find your property. For example, it shouldn’t be the Jarad Severe Living Trust. It could be the Pretty Tree Trust. You can name your trust anything. Always include the date the trust was established as part of the trust’s name. Be sure you use the trust properly.

4. Social Security Trick

Have the big wage earner in the husband and wife team wait until 70 to start the Social Security payments. If you wait until then, you’ll get more each month. Have the lower wage earner start drawing their SS at an early age, then when the higher wage earner’s SS kicks in you can both collect at the higher rate. The higher wage earner will “file and suspend” their SS benefits until age 70 and you can use the lower wage earner’s SS benefits before you both retire.

5. Joint Tenancy and Kids – Bad Idea

Never put your kid’s name on a bank account, deed, or any other asset as a joint tenant. The kid owns 100% of the asset along with your 100% of the asset. (Yes, that doesn’t make sense, but the law doesn’t have to make sense.) Kids are like yogurt – you never know when they are going to go bad. If they go bad, you can lose 100%.

6. Probate Applies to All Assets

If you die without a properly written living trust, your family will have to probate all of your assets that require your signature to transfer. Probate is what you pay the lawyer and it typically takes about 10% of the estate.

7. 1031 to Get Out of Real Estate

There are a number of ways to do a 1031 exchange on a piece of real estate and “get out of real estate ownership.” There are ways you can make it so you don’t pay the tax on the sale of your real estate property. You can end up with an asset that gives you good cash flow without the management headaches.

8. Roth If You Can

You need to go to great lengths to get a Roth IRA. Once you have a Roth, even if there isn’t a lot of money in it, you can start buying property in the Roth and many other things to build your Roth fortune. If you have an AGI of over $179,000 you can’t create or fund a Roth IRA this year.

9. Laws Are Slow to Change

The “legal structure” of trusts, corporations, LLCs, limited partnerships, and other entities doesn’t change very often. For example, the last major change in living trust law was in 1978. How the entities are taxed changes frequently, but the laws dictating the legal structures don’t change often.

10. Disregarded LLC

A Limited Liability Company (LLC) where you are the only owner (member) can be treated as a “disregarded entity” by the IRS. You don’t have to file a tax return for the LLC. The LLC’s income is just reported on a Schedule C with your 1040. You still get the liability shield of the LLC, but the tax convenience of a sole proprietorship.

11. Use Government Per Diem

If you travel for business look at using the government per diems. Go to the website, Per Diem Rates and pick your state and city. You can use the meal per diem, even if you don’t eat that much.

12. Annual Gift Limits

You can give any other person up to $13,000 in 2011 and it isn’t reported as a gift. If you give an individual more than that, then you need to file a gift tax return. You can give as many individuals as you want the $13,000 and not worry about the gift tax. If you don’t have anyone you want to give $13,000 this year to, I will volunteer to be the receiver of your gift. I don’t have to report it as a gift or income. Seriously, gifting can be a good way to diminish the value of your estate.

13. Two Types of Powers of Attorney

There is a general power of attorney and a durable power of attorney. You will use the general power of attorney to sell your son’s car. The general power of attorney becomes invalid if the principal (guy who makes out the power of attorney) becomes incompetent. The durable power of attorney just hangs around in the file cabinet and doesn’t get its power until the principal becomes incompetent.

14. Second Marriage – Watch Out!

If there is a second marriage in the family, the couple had better do their estate planning, because the intestate laws will “screw” either his kids or her kids. It’s a guarantee.

15. Your Estate Includes

Your estate tax will be calculated to include your house, dog, cat, kids, car, all the other real estate, stocks, bonds, IRAs, 401(k)s, other retirement money, your life insurance face value, your little business that you’ve never put a value on, etc. Trust me, the IRS will evaluate it. It’s all there. You’re worth more dead than alive.

16. Power of Attorney

All powers of attorney automatically are void upon the death of the “principal” (the guy who makes the power of attorney). If you think you are going to avoid probate because Dad has a power of attorney, think again.

17. It’s Worth Knowing the Law

The law touches everything you do. If you understand the laws you can make more money at everything you do. Imagine the wealth you can get when you know how to structure the deal, control taxes and keep the crooks out of your pocket.

18. Good Attorney vs. Bad Attorney

It is always cheaper to use a good attorney than it is to use a cheap bad attorney.

19. Sign Documents the Same

When you are signing legal documents, such as deeds, contracts, etc., use the same signature each time. If you take title to your property using your full name, John James Doe and then sign the deed selling the property as John J. Doe, the title will be clouded (bad). Make a habit to always sign the same name. Never use nick names on legal documents.

20. The IRS Hurts

The IRS is your major impediment to financial success, either in your own personal life, or in your business. The only way to control the IRS is to know and use their own laws.

21. Man Overboard Drowning in His Asset Protection Plan

A lot of lawyers and “asset protection experts” will talk you into having a separate LLC, family limited partnership, or corporation for each one of your investment properties, business activities, and whatever else they can think up. They love it, because these guys aren’t bashful about charging for each entity they put in place. Here’s a true story about 2 doctors. The attorney had set them up with 53 family limited partnerships (one for each of their 53 properties) and had charged them $5,000 for each partnership. Then to top things off, he had made the partnerships in his state not the doctors’ state and he had appointed himself as the registered representative for each partnership. In a gesture of kindness, the attorney was only charging $1,500 per year per partnership to be the registered agent and issue K-1s to the doctors after his accountant billed for doing the taxes on each partnership.

The poor doctors called up my friend and stated that they no longer had to worry about asset protection because their lawyer now had all their money. The point is, don’t go overboard. You can’t manage the complexity of more than 3-5 entity structures in your life, unless you pay the attorney your fortune to “manage” the entities for you.

22. Living trusts are revocable and irrevocable

The term living trust simply notes that the trust is created during the life of its creator (grantor, trustor, or settlor). The trust could be revocable or irrevocable. The living trust used for estate planning is almost always a revocable trust, because the creator(s) usually want to get out of the trust if they need to for some reason. When the grantor(s) die(dies), their revocable living trust suddenly becomes an irrevocable trust. (Yes, it always happens that way, because it is pretty hard for the dead guy to revoke his trust, so the law just makes it automatically irrevocable.)

23. Land Trusts – Don’t expect protection

Land trusts are often “sold” as an asset protection tool. They don’t give you any asset protection. They are always a revocable trust. (They could be established as irrevocable, but they never are.) Revocable trusts don’t give asset protection. If they are revocable, the courts can always get the property contained in them. Land trusts can give you some anonymity if you give the trust a name other than your own name. But, they don’t offer any asset protection.